Changes in the Currency Specification of Hard Fork and Future Policy in Sprouts

Transcription

1 Changes in the Currency Specification of Hard Fork and Future Policy in Sprouts Sprouts Official Development Team 2018, May 13th Sprouts Official Development Team 1

2 Introduction Is Sprouts already dead coin? The answer is NO. Sprouts had been released by former development team 3 years before. And the very high Proof-of-Stake reward rate became famous and spreaded its community. However, the value of the currency continued to be diluted during three years. Now it is called dead coin. In January of 2018, we started an unofficial community of Sprouts in Japan with volunteers who saw a great potential in Sprouts. Even though it was a totally new community, many new holders who feel a massive potential in Sprouts are gathering in our community. Former Team had seen our community's activity. And expecting us to get Sprouts better, they gave us the rights to administer and develop Sprouts. We are tackling the revival of Sprouts every day. Policy for reviving Sprouts Currency design ensuring a balance between supply and demand Crypto-currency settlement to achieve smart payment in the real world A community function that fosters the sprouts of all possibilities and talents of people Sprouts Official Development Team 2

3 The number of the people in the community of Sprouts holder in Japan was about 10, but so far we made it over 5600 in this 3 months. Aiming at the currency actually used, we are developing functions using crypto-currency in various projects, including AirDrop function on Discord. The first store that supports Sprouts payment in the real world has been born this month. In addition, for further activation, we are walking a new way, thinking of setting a new gathering place for people from all over the world based on a new concept "the crypto-currency fostering new possibilities and talents." Concepts and new functions used for settlement in the real world are currently being undertook development within the our team. we plan to issue another white papers and road maps around the middle of June. Prior to this, we are planning a hard fork for renovation of currency specifications necessary to realize this new concept. In order to achieve our goals, it is necessary to review from the fundamentals of currency design and it will be a significant change for existing holders. This white paper is for holders and those who are interested in Sprouts, intended to explain the changes and the reasons in Sprouts. We hope you to read this white paper and understand the Sprouts hard fork. Sprouts Official Development Team 3

4 Index 1. Outline of specification change 2. Background 3. Restructuring Policy of Sprouts 4. Specific Measures 5. Future Policy in Sprouts 6. Frequently Asked Questions Appendix A Implementation Schedule Appendix B Sprouts Community Sprouts Official Development Team 4

5 1. Outline of specification change This specification change is necessary in order to fix bugs accumulated for many years and make Sprouts available in the real world. In the past Sprouts was characterized by high PoS fee and has formed the community. However, high reward, ignoring demand, will result in continued dilution of the value of the currency, which will hinder the use in the real world. This hard fork is aimed at achieving balance between rewards of maintaining the Sprouts network and consumptions by practical use, and enabling Sprouts market to continue. The outline of specification change is as follows. A) change in rewards 2%/day Fixed amount Using the concept of half-life, we continuously reduce the reward. The final reward will converge to 156, 250 Sprouts. Immediately after HF 10,000,000 SPRTS 1 week after HF 5,000,000 SPRTS 2 weeks after HF 2,500,000 SPRTS 1 month after HF 1,250,000 SPRTS 2 months after HF 625,000 SPRTS 4 months after HF 312,500 SPRTS 8 months after HF 156,250 SPRTS Sprouts Official Development Team 5

6 B) rebuild based on Peercoin For fixing many bugs stored in this three year, we rebuild a new wallet with Peercoin base. We will release on incorporating the specifications of existing Sprouts and the new specification changes this time. 2. Background The current increasing rate is 2% per day. In other words, the total issuance amount doubles per 1 month to 2 months. Sprouts continues to decline in per unit currency value due to the bulking total issue volume because Sprouts is not currently in demand for it. So far, crypto-currencies mainly focus on gathering holders. Many of the Sprouts holders chose it for its high rate of PoS reward. So it may have been a success in terms of expanding communities at the beginning of crypto-currency spread. However, the situation is different now. Maintaining the current remuneration system that supply quantity continues to expand beyond the demand in the real world means that the value per unit currency will continue to decline on a daily basis and impede the utilization of Sprouts in the real world. Sprouts Official Development Team 6

7 We believe that it is necessary to match the increase in currency and demand to be used with the remuneration to maintain the network and maintain the value per unit currency over a long period of time. 3. Sprouts reproduction policy By adopting the fixed fee this time, the new issue will be gradually reduced from 5.76 billion SPRTS / day immediately after the hard fork and finally it will be reduced to 0.9 billion SPRTS / day. We aim to bring Sprouts Official Development Team 7

8 consumption closer to the final reach point of 0.9 billion SPRTS / day (achievement of primary balance). Currently there is no commission fee when using functions such as ",rain" and ",shipping" on Discord now. However, in the future, we aim to consume (Burn) 0.9 billion SPRTS / day by gradually changing Sprouts to consume (Burn) when using those functions. If this can be realized, demand from new holders newly generated as demand, and consumption increase due to activation of community will be returned to existing holders in the form of value increase of currency unit as it is. 4. Specific Measures Consumption is necessary to keep the balance between new currency issuance and consumption. By realizing the following measures, we will match daily consumption by using function and daily rewards. A) Expanding the Sprouts Community B) Expanding usage scenes in the real world C) Increasing users in the real world A) Expanding the Sprouts Community Increasing community users leads increasing consumption. Since we started as informal development in January 2018, we have already released several functions such as ",rain" and ",shipping" in "Farm" until now. In Japanese chat, more functions are already implemented. Sprouts Official Development Team 8

9 Also, in April 2018 we released a ranker system as a award for doing a lot of AirDrop. This system encourages transfer of Sprouts from a major holder to small holder by giving status and benefits to large holders actively doing AirDrop. Furthermore, with this system we have succeeded in increasing the members of the community. With these measures, over 12 billion SPRTS has been AirDropped in the community in these three months. The amount of AirDrop continues to increase day by day as the number of users of the community increases. By becoming official development from March 2018, we will take a more aggressive approach to the global. We are considering more expanding this community by implementing this successful model in Japan globally. B) Expanding usage scenes in the real world Under the new concept, we will expand the use scenes in the real world. In addition to exchanging crypto-currency until now, we will increase the functions such as settlement in real stores. Moreover, we expand the use function and the available place in the real world, take the commission fee when using the function, and plan to burn the commission fee. The first real store that can be settled with sprouts was born, and we are also planning and developing functions associated with it. In addition, we are planning the development of functions in the real world based on the new concept "crypto-currency for fostering new possibilities and talents". These will be announced in another white paper scheduled to be released in June, the development content and timing of release. Sprouts Official Development Team 9

10 C) Expanding users in the real world In the past Sprouts holders were mainly investors. We will expand the function development and usage scene mentioned above. This makes it easier for users who are not investors to have crypto-currencies and they can easily use crypto-currency. The current crypto-currency assumes that you have a wallet on the exchange and you can purchase currency. It is difficult for ordinary users to open accounts and transactions on exchanges. However, due to Discord Wallet (farm) which we developed and cooperation with other cryptocurrencies, the number of holders who do not use exchanges has increased. Promoting the development of such functions will greatly contribute to the increase of users. There may be people who think that they do not lead to an improvement in the value of Sprouts even though the number of users who do not buy at exchanges increases, but that is not the case. Suppose, for example, like electronic money, the number of users who want to put Sprouts equivalent to 100 dollars on smart phones has increased to 20,000. It will lead to demand of 4 trillion SPRTS with current value. Demand for funds after new issuance is restricted will be returned to holders in the form of value increase per unit currency. Sprouts Official Development Team 10

11 5. The future image of Sprouts As we have stated so far, we will aim at rather managing the issuance of Sprouts and being used in the real world than holding investors due to abnormal PoS reward. Therefore, we will develop functions to encourage transactions of value rather than crypto-currency trading, aiming to expand actual usage, prior to investor invitation due to expansion of exchanges etc. Please expect us to create the value through future efforts and development of new functions. 6. Frequently Asked Questions 1) Is it possible to continue trading with CoinExchange.io? Yes, the CoinExchange.io is continuously available. 2) When the reward is reduced by the hard fork, it is feared that Sprouts will lose its appeal and be sold on the market. There is a possibility that users who are targeting a large number of PoS will be away. Therefore, by reducing PoS reward in stages, we designed Sprouts to prevent sharp selling. Sprouts Official Development Team 11

12 In the future, we believe that the value per unit currency rises with our measures, and there will be more merits. 3) With fixed reward, does it make sense to have large amounts of Sprouts? Yes, it does. Even if it becomes the fixed reward, holders with large amount have a high probability of minting. 4) What happens to the Sprouts in my wallet after the hard fork? Your current Sprouts can be used continuously by updating to the new wallet. If you do not update your wallet, it will be worthless as there are no exchanges for the old Sprouts after the hard fork. 5) Where can I get the new wallet? It will be released on our official website and our official Github repository. 6) Is it possible to update to the new wallet after the hard fork? Yes, you can. We will announce about the specific operation procedure in advance. Sprouts Official Development Team 12

13 Please note that if you delete your wallet without creating a backup, your Sprouts will not be restored in any way. 7) What about the coins you deposit in third-party services? There is no problem if the owner cope with the hard fork. 8) Is this a swap? No, this is not a swap. We continue the existing chain. It is like a version upgrade. 9) Is PoS lottery a transaction unit even after a hard fork? Yes, the lottery will be done for each transaction. 10) Do you charge a fee for the hard fork? No, we don't. 11) What happens if I send Sprouts to the old wallet after the hard fork? When sending Sprouts from your new wallet to the old wallet after the hard fork, it will not be put on the remittance destination. You lose the currency. Sprouts Official Development Team 13

14 12) How can I leave it to the CoinExchange.io? It will be okay as it will be switched to the new Wallet on the Coin Exchange side. 13) Wallet migration will take over the mining days in old wallet? The number of days is inherited. After moving to the new wallet, after the hard fork, the new fixed rule will be applied. The current PoS rate is applied up to the hard fork. 14) Can I deposit Sprouts in PoS pools after the hard fork? It depends on the judgment of the PoS pools. 15) Is there anything I have to do about the hard fork? If you are using desktop wallet, you need to back up the data and migrate to the new wallet. We will guide you through separate steps. Sprouts Official Development Team 14

15 Appendix A. Implementation Schedule 2018, May 13 This White Paper Release 2018, May 13 ~ May 20 Question accepting 2018, May 20 ~ May 27 The confidence vote in the community. 2018, May 27 ~ June 17 Final Test (by volunteers) 2018, June 18 New White Paper Release New Wallet Release (Windows / Mac) 2018, June 18 ~ July 6 Wallet Transition Period 2018, July 7 Carry out Hard Fork Appendix B. Sprouts Community JP web : Eng web : Discord : JP Twitter : Eng Twitter : Telegram(chat) : Telegram(Announcement) : BitcoinTalk : Sprouts Official Development Team 15